Below are two unrelated situations relating to life insurance.Required:Prepare the appropriate journal entry for each situation.1. Ford Corporation owns a whole life insurance policy on the life of its president. Ford Corporation is the beneficiary. The insurance premium is $25,000. The cash surrender value increased during the year from $2,500to $4,600.2. Petroleum Corporation received a $250,000 life insurance settlement when its CEO died. At that time, thecash surrender value was $16,000.
Below are two unrelated situations relating to life insurance.Required:Prepare the appropriate journal entry for each situation.1. Ford Corporation owns a whole life insurance policy on the life of its president. Ford Corporation is the beneficiary. The insurance premium is $25,000. The cash surrender value increased during the year from $2,500to $4,600.2. Petroleum Corporation received a $250,000 life insurance settlement when its CEO died. At that time, thecash surrender value was $16,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Below are two unrelated situations relating to life insurance.
Required:
Prepare the appropriate
1. Ford Corporation owns a whole life insurance policy on the life of its president. Ford Corporation is the beneficiary. The insurance premium is $25,000. The cash surrender value increased during the year from $2,500
to $4,600.
2. Petroleum Corporation received a $250,000 life insurance settlement when its CEO died. At that time, the
cash surrender value was $16,000.
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